Archive | Pension

[update – 25 May 2017] NSDL is now allowing NPS subscribers to update their FATCA self-certification online. You can do this by logging into your NPS account on https://cra-nsdl.com/CRA/ and clicking on ‘FATCA Self-certification’ under the main menu of ‘Transaction’. The FATCA submission will be authenticated via an OTP that you will receive on your registered […]

To protect our senior citizens from falling interest rates, the government has launched Varishtha Pension Bima Yojana 2017. This is a pension scheme that guarantees 8% return for 10 years. The launch date has not been notified yet. Government has launched this scheme earlier as well. A similar program by the same name ‘Varishtha Pension […]

The young are often called reckless. But those who are young also have a large appetite for risk. And investing in equity offers a perfect backdrop for anyone who’s young and is ready to bet on risk. To make NPS (National Pension System) more suitable to the young (and not so reckless), PFRDA has decided […]

It is true that many of us spend little time planning our retirement. We rely on EPF accumulations to come to our rescue. But for some of us, things have changed or soon will. Central government and a lot of private employers have moved to NPS. EPF is losing its glory in a falling interest […]

Pension is a retirement benefit that an employee receives if his employment terms so provide. It is usually paid monthly. One may choose to receive a portion of it in lump sum. Some taxpayers contribute towards a pension fund and receive monthly pension after they retire. As a thumb rule pension is always taxable. It […]

One of the clearTax readers recently asked us about changing the Point of Presence – Service Provider (POP-SP) of their National Pension System (NPS) account. When you open an NPS account online through the NSDL website, the default POP and POP-SP you are assigned is the National Pension System Trust. The reader, who had registered […]

Opening a National Pension System (NPS) account just got easier. You don’t need to go to a designated point-of-presence or a bank anymore to open an account. An online process for the same has been facilitated recently by the PFRDA. The eNPS facility was launched last year on a pilot basis, but in February this […]

Income tax act does not clearly mention about tax exemption on pension paid to disabled Armed Forces. However, CBDT has given clarifications that disability pension received by armed forces is exempt from tax. Via Instruction No 136F.No. 34/3/68-IT(AI),dated the 14th Jan 1970, CBDT said that entire disability pension paid to officers of the Indian Army […]

The National Pension System (NPS) is a relatively new tax-saving investment. The NPS was launched by the government to allow every Indian citizen to get a pension during retirement, especially those who are not salaried employees, self-employed professionals or those working in the unorganized sector. So, should you invest in NPS? Understand the pros and […]

The National Pension System (NPS) has two primary account types: Tier-I and Tier-II. A lot of investors get confused between these two account types. The following table explains the differences between the two account types. NPS Tier-I Account NPS Tier-II Account Status Default Voluntary Withdrawals Not allowed Allowed Tax exemption Up to Rs 2 lakh […]